SECI Seeks ₹660 Crore Loan For 200 MW Solar Project In Madhya Pradesh

Solar Energy Corporation of India Limited (SECI), a Navratna government enterprise under the Ministry of New and Renewable Energy, has issued a request for proposal to scheduled commercial banks and financial institutions for raising funds for a new solar project. The company is seeking a term loan of ₹660 crores to support the development of a 200 MW solar PV power plant in Dhar, Madhya Pradesh.

This project is part of SECI’s ongoing efforts to expand its renewable energy portfolio, which has already crossed more than 76.5 GW of awarded capacity across solar, wind, and hybrid segments by the end of 2025. The Dhar solar project is being developed under the Central Public Sector Undertaking (CPSU) Scheme Phase-II. It is one of the projects included in a larger 1200 MW capacity allocation that also covers projects in Ramagiri in Andhra Pradesh and Radhanesda in Gujarat.

The project received approval from SECI’s Board of Directors during its 99th meeting held in October 2025. The electricity generated from this plant will be supplied to the Madhya Pradesh Power Management Company Limited under a power purchase agreement at a tariff of ₹2.45 per kWh. The agreement will remain valid for a period of 25 years, ensuring long-term revenue visibility for the project.

The total estimated cost of the Dhar solar project is ₹944.78 crores. After factoring in viability gap funding and solar subsidies from the ministry amounting to ₹129.44 crores, the net project cost comes down to ₹815.34 crores. SECI plans to finance the project using a debt-equity ratio of 80:20, which may be adjusted up to 70:30 depending on financing conditions. The equity portion will be funded through SECI’s internal resources, while the debt requirement of around ₹652.27 crores will be arranged through the proposed term loan.

For the development of the project, SECI has already secured about 460 hectares of land across the villages of Gadi, Rajod, and Nawapada in Dhar district. The company has also obtained in-principle grid connectivity at the 220 kV level from the MPPTCL Badnawar substation, ensuring readiness for power evacuation once the plant becomes operational.

Key contracts for the project have already been awarded. The supply of solar modules and balance of system components has been assigned to FS India Solar Ventures and Amar Infrastructure Ltd. The project is expected to achieve its scheduled commercial operation date by May 22, 2027.

SECI has invited financial institutions to participate in funding the project, with a minimum lending requirement of ₹150 crores. The proposed loan will have a tenure of 20 years, including an 18-year repayment period and a two-year moratorium. As security, SECI is offering a first pari-passu charge on the project’s fixed assets.

With a strong ‘AAA’ credit rating from ICRA and CARE, SECI is also seeking competitive interest rates from lenders, without any commitment, upfront, or processing fees. Interested institutions are required to submit their proposals in sealed envelopes to SECI’s office in New Delhi by April 24, 2026.